The Disciplined Mind of a Good Investor

Warren Buffet is arguably the Investing icon and amongst his most quotable quotes he noted that “Someone is sitting in the shade today because someone planted a tree a long time ago”

Investing can seem like navigating a minefield, but at its core, it is a very simple activity. Although simple does not mean easy, because we are people, not machines, and as such we can become our own worst enemies through undermining our own investing success. Successful investing takes discipline, which can so easily be lost, time and again when we give in to impulse and emotions.

Things to keep in mind to keep your investing discipline on track

Keep focussing on the goal

Whatever it is that you intend to do with your investment should be the constant focus of your drive. If you don’t have a clear goal, then take some time and flesh it out. Be clear as to what you want your investment to achieve for you and resolve to be patient. Being realistic with your expected return on investment is the key to being able to track the investment growth and match it directly to measure the achievement of your goal. Being without a clear goal will have you constantly changing the goal posts, leading to impulsive decisions that will drain your resources.

Don’t let a ‘sure thing’ tempt you

If you don’t have a long-term investment philosophy, then you may be tempted to try and beat the market by switching investments. As a short-term strategy this is close to gambling and as with gambling the house always wins. Don’t try to pick stocks, bonds, etc to beat the market, rather trust your financial future to a well-established portfolio and professional broker.

Develop the right habits

Investment takes discipline, it is easy to invest a lump sum occasionally but to maintain a constant investment plan, has its own challenges with all the monthly bills, ‘little-treats’ and unexpected expenses. Break out of the traditional spending model where we spend first, pay the bills second and save last. Pay yourself first, take care of the bills and spend last. For bonuses and additional incomes, you can decide to contribute a greater portion of this income to your investment.

Keep believing in your decisions

The disciplined investor does not doubt their decisions trusting that they have made the right choices for their investments. Our superior investment rates backed by our expert client-specific advice, a high degree of integrity and professionalism will give you peace of mind with your investment decisions.